Cadence Pharmaceuticals, (FRA:QEW) ROCE % : -21.33% (As of Dec. 2013)

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What is Cadence Pharmaceuticals, ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Cadence Pharmaceuticals,'s annualized ROCE % for the quarter that ended in Dec. 2013 was -21.33%.

Cadence Pharmaceuticals, ROCE % Historical Data

The historical data trend for Cadence Pharmaceuticals,'s ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Cadence Pharmaceuticals, ROCE % Chart

Cadence Pharmaceuticals, Annual Data

Trend

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

ROCE %

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-79.32

-50.06

-59.78

-68.20

-29.53

Cadence Pharmaceuticals, Quarterly Data
	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13
ROCE %	Get a 7-Day Free Trial															-97.33	-1.40	-61.80	-38.68	-21.33

Cadence Pharmaceuticals, ROCE % Calculation

Cadence Pharmaceuticals,'s annualized ROCE % for the fiscal year that ended in Dec. 2013 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2013 )		(A: Dec. 2012 )		(A: Dec. 2013 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2013 )		(A: Dec. 2012 )		(A: Dec. 2013 )
	=	-14.474	/	( ( (74.431 - 16.001)	+	(66.286 - 26.676) )	/ 2 )
	=	-14.474	/	( (58.43	+	39.61)	/ 2 )
	=	-14.474	/	49.02
	=	-29.53 %

Cadence Pharmaceuticals,'s ROCE % of for the quarter that ended in Dec. 2013 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2013 )		(Q: Sep. 2013 )		(Q: Dec. 2013 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2013 )		(Q: Sep. 2013 )		(Q: Dec. 2013 )
	=	-8.712	/	( ( (62.85 - 20.786)	+	(66.286 - 26.676) )	/ 2 )
	=	-8.712	/	( ( 42.064	+	39.61 )	/ 2 )
	=	-8.712	/	40.837
	=	-21.33 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2013) EBIT data.

Cadence Pharmaceuticals, (FRA:QEW) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

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Cadence Pharmaceuticals, Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Cadence Pharmaceuticals, Inc. (FRA:QEW) » Definitions » ROCE %

Comparable Companies

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Address

Website

http://www.cadencepharm.com

Cadence Pharmaceuticals, Inc. is a biopharmaceutical company focused on in-licensing, developing and commercializing product candidates mainly for use in the hospital setting. The Company's main activities are conducting research and development activities as well as conducting clinical trials. The company has in-licensed rights to products: Acetavance, an intravenous formulation of acetaminophen, and Omigard, an omiganan pentahydrochloride 1% aqueous gel. It in-licensed the exclusive United States, or U.S., and Canadian rights to Acetavance from Bristol-Myers Squibb Company, or BMS, which markets this product candidate in Europe and other markets for the treatment of acute pain and fever under the brand name Perfalgan. The Company is developing Acetavance, a proprietary intravenous formulation of acetaminophen, for the U.S. market for the treatment of acute pain and fever in adults and children. In its oral form, acetaminophen is the most widely used drug for the treatment of pain and fever in the U.S. The Company's licensor, BMS, currently markets this proprietary intravenous formulation of acetaminophen for the treatment of acute pain and fever in Europe and several other markets outside the U.S, where it is known as paracetamol and is marketed under the brand name Perfalgan.

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